SECURE Act: 2020 Startup Tax Credits


SECURE Act: 2020 Startup Tax Credits


The SECURE Act (Setting Every Community Up for Retirement Act of 2019) has made it less expensive for a small business to establish and administer a new plan.  Effective January 1, 2020 (so for any plan that is established in 2020 and beyond) the tax credit is capped at $250 times the number of non-highly compensated employees eligible to participate in the plan, up to a $5,000 maximum but never less than $500.  The credit is limited to 50% of the start-up costs and can be used for three years.

Who is considered a small business? Generally, one with less than 100 employees. 2020 should be a great year to start a retirement plan!


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